This year will be slightly different due to the coronavirus pandemic, with oil prices seeing a sharp drop, and predicts that the region will likely experience a partial recovery after the lockdowns. Consumer lubricant automotive lubricant oils will be 20% below 2019 levels, and this segment will bear the brunt of the decline because people are not allowed to go out and use their cars, while consumer confidence will also suffer.
While most commercial applications are tied to the marine segment, the drive to establish and expand manufacturing, trading, production and mining will encourage use of higher-performance industrial lubricants as new equipment is installed. Original equipment manufacturers in the industrial segment will continue to drive performance specifications through lubricant recommendations. Racing lubricant use is likely to grow with the import of high-performance equipment, helping propel commercial lubricant consumption growth between 2019 and 2024.
Commercial automotive lubricant hydraulic oils totaled between 300,000 and 400,000 tons last year, while industrial lubricant hydraulic oils reached about 200,000-300,000 tons and consumer automotive consumption about 100,000-200,000 tons, according to technolubeuae assessments.
The region is making significant investments to promote industries other than oil and gas after an oil dip in 2015-2016. They are trying to boost manufacturing in the region and set up additional free trade zones. It is already a huge trade hub as it is, so it makes sense to grow those segments.
Automotive engine oils account for about 60% of the region’s lube hydraulic oils, with heavy-duty motor oil the dominant type as it represents 42% and passenger car motor oil only about 20%.
Among industrial oils, process oils and hydraulic fluids are the two leading types, and the U.A.E. has a large marine segment, accounting for 70 percent of the region’s marine engine oil consumption.
Hydraulic oils totaled 500,000 tons last year, with SAE 15W-40 the main viscosity grade consumed in the region, accounting for about 54% of the total. The 20W-50 category follows with 17%.
Within the passenger car motor oil segment, 20W-50 is seen as the preferred viscosity grade, accounting for 67% of total hydraulic oils. Tsuen explained that consumers in the region still believe that the hot, harsh environment and the dusty conditions require more frequent oil changes and a heavier-viscosity oil. Meanwhile, monograde have pretty much disappeared within the passenger car segment, although they stayed around because of their viscosity and low price point.
